A key regulatory piece has fallen into place: Hong Kong is officially rolling out its licensing framework for stablecoins.

On June 6, the Hong Kong SAR Government officially announced that the Stablecoin Issuance and Governance Ordinance (Cap. 656) will come into effect on August 1, 2025, establishing a clear licensing framework for stablecoin-related activities.

Christopher Hui, Secretary for Financial Services and the Treasury, stated:

"The licensing regime will provide proper regulation of relevant stablecoin activities after the Ordinance comes into operation, and is a milestone for the sustainable development of Hong Kong’s stablecoin and digital asset ecosystem."

Key Highlights:

•  A dedicated licensing regime will regulate stablecoin issuance and related activities, offering clear compliance pathways and strengthening Hong Kong’s role as a trusted digital asset hub.
• Unlicensed entities may only offer designated stablecoins to professional investors, as defined under the Securities and Futures Ordinance.
• The Hong Kong Monetary Authority has completed a consultation on detailed regulatory requirements, including those related to anti-money laundering and counter-terrorist financing.

As part of the legislative process, two related legal notices will be tabled in the Legislative Council next Wednesday (June 11) under the “negative vetting” procedure. With clearer regulations and safeguards in place, the industry widely expects Hong Kong's stablecoin framework to attract more institutional participants and foster a compliant, transparent environment, laying the foundation for deeper integration between traditional finance and digital innovation.

How do you see this shaping stablecoin adoption and Web3 development in Hong Kong and across the region?

Official Government Press Release: https://www.info.gov.hk/gia/general/202506/06/P2025060600279.htm